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TORONTO, Sept. 29, 2017 (GLOBE NEWSWIRE) -- Firm Capital American Realty Partners Corp. (the “Corporation”) (TSXV:FCA.U) (TSXV:FCA) is pleased to announce that it has implemented a dividend reinvestment plan (the “DRIP”) and a share purchase plan (the “Purchase Plan” and collectively with the DRIP, the “Plans”), each to be offered to holders of shares of the Corporation resident in Canada and administered by TSX Trust Company (the “Agent”). The Plans enable shareholders to increase their investment in the Corporation by receiving dividend payments and/or optional cash payments in the form of common shares in the capital of the Corporation (“Shares”).
Participation in the DRIP is optional and will not affect shareholders’ cash dividends unless they elect to participate in the DRIP. Participants in the DRIP plan may obtain additional Shares of the Corporation by automatically reinvesting the cash dividends paid on Shares held by the DRIP plan participant. Shareholders can choose the number of Shares they would like to have enrolled in the DRIP. Shares available for the reinvestment of dividends may, at the discretion of the Corporation, be issued from treasury at the Average Market Price or be purchased on the open market at the applicable best efforts open market purchase price, all of which will be publicly announced by the Corporation. For the purposes of this announcement, “Average Market Price” means the volume weighted average price of the United States dollar traded Shares traded on the TSX Venture Exchange (the “Exchange”) for the five trading days immediately preceding the relevant dividend payment date or the effective date of the purchase of additional Shares under the Purchase Plan, as applicable.
If a participant elects to purchase Shares under the Purchase Plan, all optional cash payments made by the participant under the Purchase Plan will be invested for additional Shares at the Average Market Price. The additional Shares under the Purchase Plan will be issued out of the treasury of the Corporation.
If the Average Market Price is less than US$7.50, the Agent shall use such funds to purchase, at a cost less than US$7.50 per Share, additional Shares for the participants through the facilities of the Exchange for a period of five trading days following the relevant dividend date. To the extent the Agent is unable to purchase additional Shares at a cost less than US$7.50 per Share because Shares are not offered or are offered at prices which, after payment of brokerage fees or commissions, would result in a cost at or exceeding US$7.50 per Share, then the remaining funds will be applied to the purchase of Shares from the treasury of the Corporation at US$7.50 per Share. If the Average Market Price is US$7.50 or more, the funds will be applied to the purchase of Shares from the treasury of the Corporation at the Average Market Price. Currently, there are 512,991 Shares reserved under the DRIP.
A minimum purchase of US$3,000 on the last business day of each calendar quarter (a “Quarterly Purchase Date”) and maximum purchases of up to US$12,000 per year (payable in one lump sum or from time to time on a Quarterly Purchase Date) will be permitted under the Purchase Plan. The aggregate number of Shares that may be issued under the Purchase Plan may not exceed in each year 2% of the number (at the commencement of the fiscal year of the Corporation) of the outstanding Shares of the Corporation.
Eligible shareholders who hold their Shares in their name may enroll by completing and delivering an enrollment form in accordance with the DRIP not less than five business days before a dividend record date. Notwithstanding the foregoing, for the first dividend, the Corporation has elected to extend the enrollment deadline to Friday, October 6, 2017. The full text of the DRIP will be mailed to registered shareholders in the near future and is available on the Corporation’s website and the Agent’s website, together with an enrollment form, at www.firmcapital.com and www.tsxtrust.com/resources/investor-centre/forms, respectively. Investors who hold Shares through a broker or other financial institution (a “nominee”) and wish to participate in the DRIP must enroll in the DRIP through their respective nominee agent. The administrative practices of nominees may vary and affect the manner in which shareholders can participate in the DRIP. In addition, the various dates by which actions must be taken by shareholders as set out in the DRIP may differ from the dates required by the nominee. The participation rate of insiders in the DRIP is not currently known to the Corporation.
Shareholders should carefully read the complete text of the DRIP and consult their financial advisors about potential tax implications before making any decisions regarding their participation in the DRIP. Dividends reinvested under the DRIP are designated as “eligible” dividends for the purposes of the Income Tax Act (Canada) and any similar provincial legislation. Dividends are only payable as and when declared by the Corporation’s board of directors.
About the Corporation
The Corporation is a U.S. focused real estate investment entity that pursues real estate and debt investments through the following investment platforms:
- Income Producing Real Estate Investments: Acquiring income producing real estate assets in major cities across the United States. Acquisitions are completed by the Corporation primarily in joint venture partnerships with local industry expert partners who retain property management responsibility; and
- Mortgage Debt Investments: Real estate debt and equity lending platform in major cities across the United States, focused on providing all forms of bridge mortgage loans and joint venture capital.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including those described in the Corporation’s Annual Information Form under “Risk Factors” (which can be obtained at www.sedar.com). Those risks include, without limitation, risks associated with general economic conditions and the fact that the Corporation reserves the right to amend, at its sole discretion, the price (currently US$7.50) at which it is determined whether funds will be applied to the purchase of Shares from treasury or through the facilities of the Exchange, from time to time at its sole discretion; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Corporation holds properties; volatility of real estate prices; inability to complete the Corporation’s single family property disposition program or debt restructuring in a timely manner; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of the Corporation to implement its business strategies; competition; currency and interest rate fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Except as required by applicable law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Kursat Kacira
President & Chief Executive Officer
(416) 635-0221
Sandy Poklar
Chief Financial Officer
(416) 635-0221